Company Plans to Leverage PVH Asia Pacific Platform to Fuel
Expansion of Brand Across Greater China
NEW YORK--(BUSINESS WIRE)--Mar. 24, 2019--
PVH
Corp. (NYSE:PVH) announced that it has entered into a definitive
agreement to reacquire from Dickson Concepts (International) Limited the
license for the Tommy Hilfiger brand in Hong Kong, Macau, Taiwan,
Singapore and Malaysia, along with certain related leases and retail
assets. Terms of the transaction were not disclosed.
The transaction is expected to close in the second quarter of 2019 and
is aligned with PVH’s stated strategy of gaining more direct control
over its brands, including through the acquisition of licensed
businesses. The transaction is intended to allow the company to
capitalize on the significant growth opportunity in the region.
Emanuel Chirico, Chairman and Chief Executive Officer, PVH Corp.,
commented: “This transaction demonstrates our commitment to making
strategic investments to support the long term growth of PVH and our
Tommy Hilfiger business, while leveraging our well-established
infrastructure, our leadership expertise and strong brand momentum
across both our Tommy Hilfiger and Calvin Klein businesses in the
region.”
Daniel Grieder, Chief Executive Officer, Tommy Hilfiger Global,
commented: “We are looking forward to executing a more fully integrated
strategy for the Greater China market in coordination with our directly
operated mainland China business. This transaction should allow us to
further realize the growth opportunities that exist for the TOMMY
HILFIGER brand by enabling the introduction of a wider range of
product lines, and offering consumers a more immersive and elevated
brand experience. Building on our strong existing regional foundation,
we plan to accelerate the growth of the Tommy Hilfiger business and
invest further in driving the expansion of the brand.”
About PVH Corp.
With a history going back over 135 years, PVH has excelled at growing
brands and businesses with rich American heritages, becoming one of the
largest apparel companies in the world. We have over 36,000 associates
operating in over 40 countries and nearly $9 billion in annual revenues.
We own the iconic CALVIN
KLEIN, TOMMY
HILFIGER, Van
Heusen, IZOD,
ARROW,
Speedo*,
Warner’s,
Olga
and Geoffrey Beene brands, as well as the digital-centric True
& Co. intimates brand, and market a variety of goods
under these and other nationally and internationally known owned and
licensed brands.
*The Speedo brand is licensed for North America and the
Caribbean in perpetuity from Speedo International Limited.
PVH CORP. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: Forward-looking statements made in this press
release, including, without limitation, statements relating to PVH
Corp’s (the “Company”) earnings, future plans, strategies, objectives,
expectations and intentions, are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements are
inherently subject to risks and uncertainties, many of which cannot be
predicted with accuracy, and some of which might not be anticipated,
including, without limitation, (i) the Company’s plans, strategies,
objectives, expectations and intentions are subject to change at any
time at the discretion of the Company; (ii) the Company may be
considered to be highly leveraged, and uses a significant portion of its
cash flows to service its indebtedness, as a result of which the Company
might not have sufficient funds to operate its businesses in the manner
it intends or has operated in the past; (iii) the levels of sales of the
Company’s apparel, footwear and related products, both to its wholesale
customers and in its retail stores, the levels of sales of the Company’s
licensees at wholesale and retail, and the extent of discounts and
promotional pricing in which the Company and its licensees and other
business partners are required to engage, all of which can be affected
by weather conditions, changes in the economy, fuel prices, reductions
in travel, fashion trends, consolidations, repositionings and
bankruptcies in the retail industries, repositionings of brands by the
Company’s licensors and other factors; (iv) the Company’s plans and
results of operations will be affected by the Company’s ability to
manage its growth and inventory; (v) the Company’s operations and
results could be affected by quota restrictions and the imposition of
safeguard controls (which, among other things, could limit the Company’s
ability to produce products in cost-effective countries that have the
labor and technical expertise needed), the availability and cost of raw
materials, the Company’s ability to adjust timely to changes in trade
regulations and the migration and development of manufacturers (which
can affect where the Company’s products can best be produced), changes
in available factory and shipping capacity, wage and shipping cost
escalation, and civil conflict, war or terrorist acts, the threat of any
of the foregoing, or political and labor instability in any of the
countries where the Company’s or its licensees’ or other business
partners’ products are sold, produced or are planned to be sold or
produced; (vi) disease epidemics and health related concerns, which
could result in closed factories, reduced workforces, scarcity of raw
materials and scrutiny or embargoing of goods produced in infected
areas, as well as reduced consumer traffic and purchasing, as consumers
become ill or limit or cease shopping in order to avoid exposure; (vii)
the failure of the Company’s licensees to market successfully licensed
products or to preserve the value of the Company’s brands, or their
misuse of the Company’s brands and (viii) other risks and uncertainties
indicated from time to time in the Company’s filings with the Securities
and Exchange Commission.
Risks and uncertainties related to the acquisition include, among
others: the risk that the regulatory approval required for the
acquisition is not obtained or is obtained subject to conditions that
are not anticipated; the risk that the other conditions to the closing
of the acquisition are not satisfied; uncertainties as to the timing of
the acquisition; competitive responses to the acquisition; the inability
to obtain, or delays in obtaining, cost savings and synergies from the
acquisition; unexpected costs, charges or expenses resulting from the
acquisition; litigation relating to the acquisition; the inability to
recognize the expected benefits of the acquisition; the inability to
integrate the acquired business without disruption to the acquired
business or existing operations; and any changes in general economic
and/or industry specific conditions.
The Company does not undertake any obligation to update publicly any
forward-looking statement, whether as a result of the receipt of new
information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190324005026/en/
Source: PVH Corp.
PVH Corp.:
Dana Perlman
Treasurer and Senior
Vice President, Business Development & Investor Relations
(212)
381-3502
investorrelations@pvh.com
Tommy Hilfiger:
Abdel El-Hamri
SVP Marketing &
Communications
E-mail: abdel.elhamri@tommy.com
Tel:
+31 20589 9888
Baptiste Blanc
Sr. Director, Global Communications
E-mail: baptiste.Blanc@tommy.com
Tel:
+31 62904 2334
